EUR/USD: Still Looking For Entry Points To Fade The EUR Rally - Citi

By eFXdata — May 21 - 03:00 PM

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Citi discusses EUR/USD outlook and adopts a sell-on-rallies bais.

"We reiterate that we think Monday’s French-German announcement about a proposed EUR540bn EU recovery fund is significant in reinforcing our expectation that pro-European forces will avert a major escalation in breakup risks, but is not sufficient to create a major investment case in Eurozone assets or EUR," Citi notes.

"Even though we acknowledge this initiative as a positive for the Eurozone, we still look for entry points to fade the EUR rally, as the key driver of our EUR-bearish view is weak growth prospects for the Eurozone, which the proposal only affects at the margin," Citi adds.